CDZ How Did Gas Prices Never Fall Below $2 In most Areas Of The Country After Oil Fell To Negative Prices In 2020?

[surada]

The biggest take away I see in all of this, is the oil company supporters see their gravy train going away in the future, and that scares the hell out of them. Do you realize that is the largest pool of political money, especially for Republicans?

Once the auto industry phases out internal combustion engine vehicles in the next 10-15 year timeframe, and have no illusions, they are going to do just that, at the sametime solar and wind, and battery technology continue gaining the lions share of energy production. It will be a new world in which you will be living, in which the cost of a gallon of gas will be all but irrelevant. I don't know what those futures speculators will be doing with their time then. My guess would be crypto.

Gravy train? Who do you think owns Big Oil?

 

[CarlinAnnArbor]

IDK. It dropped at one point briefly into the upper $1.70's locally at Sam's Club. Part of it is taxes. The gas tax is 18 cents higher in the state next door so theirs is always higher even though our gas locally mostly is delivered from that state.

In my area it was $1.70 just before 5he Vegetable and the Evil Empire seized control of our government

 

[surada]

If I stipulate that the number is off, you'll still never admit that your pants-shitting, sputtering, oatmeal brained marionette of a "president" is responsible for turning the nation back into one that is dependent upon imports again.....So what's the point of bothering with you?

We have ALWAYS been dependent on imported oil. Mostly from Canada,Mexico and Venezuela.. now Russia thanks to Trump.

 

[Devils_Advocate]

$2 considered the norm with oil at -$37.63? The glut lasted into the new year, and OPEC ramped production, with the intent of bankrupting domestic drillers, which they did.

Record bankruptcy debt across North America oil and gas in 2020

Low crude prices prompted more than 100 North American oil and gas firms to file for bankruptcy in 2020, with their combined debt more than $100bn.

www.nsenergybusiness.com

This happened under the previous administration, so what you say makes no sense.

First off you guys never look at the taxes that are being applied when calculating all this…

We have State and Federal Taxes on Gas then the owner of the filling station has to increase the price to meet his or her cost to operate.

Also it depends on the oil being processed and sold and let remember the U.S. imports most of it Oil from Canada and Mexico, and the oil is dirtier than the oil from the Middle East which mean higher cost to produce.

The U.S. exports it oil because it is dirtier…

Between Taxes and cost to refine mean the cost will be higher then factor in the transportation cost, the cost to operate the filling stations and so on then you can understand the reason why gas will never be as low as we saw in the 1990’s but still there is no excuse for three dollar a gallon price either, so stop trying to make one!

 

[surada]

First off you guys never look at the taxes that are being applied when calculating all this…

We have State and Federal Taxes on Gas then the owner of the filling station has to increase the price to meet his or her cost to operate.

Also it depends on the oil being processed and sold and let remember the U.S. imports most of it Oil from Canada and Mexico, and the oil is dirtier than the oil from the Middle East which mean higher cost to produce.

The U.S. exports it oil because it is dirtier…

Between Taxes and cost to refine mean the cost will be higher then factor in the transportation cost, the cost to operate the filling stations and so on then you can understand the reason why gas will never be as low as we saw in the 1990’s but still there is no excuse for three dollar a gallon price either, so stop trying to make one!

You're right ... Oil from Canada and Mexico is heavy, sour crude.

 

[justoffal]

In 2020, the price of oil fell to negative $37.63 a barrel. The economy shut down, and demand at all time lows.

Oil prices went negative a year ago: Here's what traders have learned since

It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have...

www.marketwatch.com

But the price of a gallon of gas still hovered in the $2 a gallon range at $1.93 at it's lowest. Even higher in other areas of the country, and stayed over $2 a gallon for the rest of the year.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Refineries refused to refine oil into gasoline to help the American people.

Too Much Oil: How a Barrel Came to Be Worth Less Than Nothing (Published 2020)

One oil price went negative on Monday, signaling that there is no place to store all the crude the world is producing but not using.

www.nytimes.com

Even with an historic glut of oil, that could have been refined, helping the economy, with historic low gas prices, that could have remained low, by simply continuing to produce as demand started to recover.

We're Barreling Toward An Epic Glut Of Oil

The supply of oil has surged as the coronavirus pandemic has destroyed demand. Prices have plummeted and analysts are starting to ask if the world will have enough space to store all the extra oil.

www.npr.org

So why didn't the President, and Congress act on this at the time?

$2 that you are referring to have nothing to do with the gas companies the oil petroleum refinance or anyone else they have the usurious fees placed on the transaction of a gallon by state and federal.

Jo

 

[justoffal]

First off you guys never look at the taxes that are being applied when calculating all this…

We have State and Federal Taxes on Gas then the owner of the filling station has to increase the price to meet his or her cost to operate.

Also it depends on the oil being processed and sold and let remember the U.S. imports most of it Oil from Canada and Mexico, and the oil is dirtier than the oil from the Middle East which mean higher cost to produce.

The U.S. exports it oil because it is dirtier…

Between Taxes and cost to refine mean the cost will be higher then factor in the transportation cost, the cost to operate the filling stations and so on then you can understand the reason why gas will never be as low as we saw in the 1990’s but still there is no excuse for three dollar a gallon price either, so stop trying to make one!

It amazes me how the left always rushes to decision-making with very little information in hand and none of the real facts to deal with. They do the same thing with class warfare. If they're not doing well financially they automatically assume it's because billionaires have their money and never consider the fact that they made bad decisions and failed to act in their own interest when the time was right.

Jo

 

[Blues Man]

The negative prices was for oil futures.

I understand that the OP doesn't

 

[justoffal]

I understand that the OP doesn't

It's like talking to neanderthal ninnies.
NN for short.

 

[DudleySmith]

In 2020, the price of oil fell to negative $37.63 a barrel. The economy shut down, and demand at all time lows.

Oil prices went negative a year ago: Here's what traders have learned since

It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have...

www.marketwatch.com

But the price of a gallon of gas still hovered in the $2 a gallon range at $1.93 at it's lowest. Even higher in other areas of the country, and stayed over $2 a gallon for the rest of the year.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Refineries refused to refine oil into gasoline to help the American people.

Too Much Oil: How a Barrel Came to Be Worth Less Than Nothing (Published 2020)

One oil price went negative on Monday, signaling that there is no place to store all the crude the world is producing but not using.

www.nytimes.com

Even with an historic glut of oil, that could have been refined, helping the economy, with historic low gas prices, that could have remained low, by simply continuing to produce as demand started to recover.

We're Barreling Toward An Epic Glut Of Oil

The supply of oil has surged as the coronavirus pandemic has destroyed demand. Prices have plummeted and analysts are starting to ask if the world will have enough space to store all the extra oil.

www.npr.org

So why didn't the President, and Congress act on this at the time?

It's still dirt cheap, and will be all the way up to $7/gal. There is a floor on prices, like costs to raise, shipping, marketing, etc., same as it is with power plants and electricity; even if the power plants and fuel were completely free, the most you would save is around 20%-25%. Nearly all the costs with oil production are up front costs, so the costs to raise can look low, but the price per barrel is also about getting back up front costs. We're looking at drilling to 4,000 feet plus these days and much deeper.

 

[DudleySmith]

https://qph.fs.quoracdn.net/main-qimg-0c382cb3404886a28f4f5e6086be7426

The cost in Texas is app. $3-4 per barrel. West Texas crude is currently $68 a barrel.

The profit margin even factoring in shipping is obvious without doing every computation in the above chart.

So what was the profit margin at -$37.63?

Price at the pump still doesn't add up. Not then. Not now.

Oil is a geo-political weapon, and big oil companies are big multi-national players. That has a lot more to do with prices than Presidents do. Want to try and trace the whys and wheres then look around; ytou will find a number of squeezes against other producers going on in the past for oil was so cheap then, From cutting into Russia's Euro market to Venezuela. and a scheme to promote LNG around the world, especially to Europe, and then there is the shadow wars over pipelines. Prices jump when oil company stockholders want a pay off, then they fall back again and plotting goes on.

 

[B. Kidd]

Trump got it right!
When you are an independent major oil producer, you have a significant say in setting the price per barrel!!
Economics 201.....

 

[surada]

Trump got it right!
When you are an independent major oil producer, you have a significant say in setting the price per barrel!!
Economics 201.....

LOLOL.. You absolutely do not.

 

[MaryL]

Lets go back to post #884. It's a fact that the CDC, under Fauci , funded a research lab in Wuhan, China to do gain of function research AND that same virus these geniuses were researching just suddenly appeared in Wuhan wet market in 2019. True. (And the media covered that up for months.) True. Fauci got vaccinated, but still got covid. TRUE. Look any of those assertions up and try to disprove it.

 

[pknopp]

Lets go back to post #884. It's a fact that the CDC, under Fauci , funded a research lab in Wuhan, China to do gain of function research AND that same virus these geniuses were researching just suddenly appeared in Wuhan wet market in 2019. True. (And the media covered that up for months.) True. Fauci got vaccinated, but still got covid. TRUE. Look any of those assertions up and try to disprove it.

Also fact. That funding was halted under Obama and started back up under Trump.

 

[Dayton3]

Lets go back to post #884. It's a fact that the CDC, under Fauci , funded a research lab in Wuhan, China to do gain of function research AND that same virus these geniuses were researching just suddenly appeared in Wuhan wet market in 2019. True. (And the media covered that up for months.) True. Fauci got vaccinated, but still got covid. TRUE. Look any of those assertions up and try to disprove it.

You do know that vaccines frequently do not prevent people from getting a disease entirely. ?

 

[MaryL]

Also fact. That funding was halted under Obama and started back up under Trump. i

So I do the calculus; NIAD overlord, Fauci wasn't appointed by Trump. He was anointed, er , appointed in 1984 and had this HUGE thing about gays, AIDs in the 80's. So here we are, a person that wasn't elected dictating stuff that just ruins our economy and puts billions of $ in the pockets of big pharma. And this asshole can't be removed. That's some democracy we got.